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Using Customer Testimonials and Endorsements Legally: Rules for Ontario Businesses

What Ontario businesses need to know about using customer testimonials, online reviews, and paid endorsements legally under the Competition Act's rules.

Corporate5 min readTSLBy the Treadstone Law team · OntarioUpdated 2026-07
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Key takeaways
  • " That means: - The testimonial should come from someone who genuinely used the product or service.
  • Reviews that do not come from a genuine customer experience raise the same concerns whether they were written entirely by staff, generated to inflate a star rating, or solicited in…
  • When a business pays someone — cash, free product, an ongoing partnership — to promote it, that relationship is what regulators call a material connection, and it generally needs to be…

A glowing customer quote on your homepage, a five-star review pinned to the top of your listing, an influencer holding up your product — testimonials and endorsements are some of the most persuasive marketing tools available to an Ontario business. They are also, legally, treated as advertising, which means the same misleading-advertising rules that apply to your headlines apply to the words you put in someone else's mouth.

Using testimonials and endorsements legally comes down to a simple underlying principle: the impression they create for a customer has to be genuine. Once you understand where the lines are, building a compliant review and endorsement program is straightforward.

The Core Rule: Testimonials Must Reflect a Genuine Experience

Displaying a testimonial is itself a representation to the public — you are telling potential customers "this is what a real customer thinks." That means:

Fake and Manipulated Reviews

Reviews that do not come from a genuine customer experience raise the same concerns whether they were written entirely by staff, generated to inflate a star rating, or solicited in exchange for a discount without disclosure of that exchange. A pattern of manipulated reviews is treated as a form of misleading advertising, not a harmless marketing tactic.

This also cuts the other way: businesses generally should not suppress or selectively delete only negative reviews while leaving the impression that all feedback shown is representative, if that curation meaningfully distorts the overall picture a customer would form.

Paid and Incentivized Endorsements

When a business pays someone — cash, free product, an ongoing partnership — to promote it, that relationship is what regulators call a material connection, and it generally needs to be disclosed clearly enough that an ordinary person would notice and understand it before relying on the endorsement.

A disclosure that is technically present but buried, vague, or easy to miss (a single hashtag among twenty others, for example) may not do the job. The test again comes back to overall impression: would a reasonable person seeing this content understand that the person was compensated to say it?

Building a Compliant Testimonial and Endorsement Program

Why Small Businesses Should Take This Seriously

It is tempting to assume these rules are aimed at large national brands, but the underlying misleading-advertising principles apply regardless of business size. A local service business that quietly writes its own five-star reviews, or that gives a customer a discount for a positive review without disclosing the exchange, is exposed to the same general framework as a much larger company — the enforcement priority may differ, but the legal standard does not.

Frequently asked questions

Can I offer a discount in exchange for an honest review?

Generally, offering an incentive for a review — as opposed to for a specifically positive review — is more defensible, but the practice should still be disclosed where the platform or context calls for it, and you should never condition the incentive on the review being favourable.

Do I need to disclose that a testimonial is from a friend or family member?

If the relationship would reasonably affect how much weight a customer gives the testimonial, disclosing it is the safer approach. An undisclosed personal relationship dressed up as an independent customer opinion raises the same concerns as an undisclosed paid endorsement.

Can I edit a testimonial for length?

Trimming for length is common practice, but you should not remove qualifiers, caveats, or context in a way that changes the overall meaning of what the customer actually said.

What should I do if I find a fake review about my competitor helping them?

You generally cannot control what a competitor posts, but if you suspect manipulated or fake reviews are affecting your market, a lawyer can advise on your options, which may include a complaint to the platform or, in some circumstances, to the Competition Bureau.

This article is general information, not legal advice. Reading it does not create a lawyer-client relationship. Ontario laws, tax rates, and government programs change, and how the law applies depends on your specific facts. For advice about your situation, speak with a licensed Ontario lawyer. Treadstone Law is licensed by the Law Society of Ontario — reach us at 1-844-900-1070 or start a file online.

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